US Week in Review - Week ending 14 March 2013
The US Week in Review highlights this week’s developments and emerging issues in the financial reporting world and gives you direct access to relevant technical accounting guidance and thought leadership produced by Ernst & Young.
Ernst & Young publications
There is still time to register for the Q1 2013 financial reporting update webcast scheduled for 20 March at 1:00 p.m. Eastern time. This 90-minute webcast will feature Ernst & Young panelists discussing current accounting and regulatory developments, convergence projects (including revenue and financial instruments) and other considerations. Webcast participants are eligible for 1.5 CPE credits.
Register now for the Understanding FASB's classification and measurement proposal webcast scheduled for 21 March 2013 at 1:00 p.m. ET. The FASB recently proposed a sweeping new classification and measurement model for financial instruments. All financial instruments, including debt and equity securities, loans, receivables and liabilities, would be classified and measured under a single model. All entities across industries would be affected by the proposal. This 90-minute webcast will provide participants with an overview of FASB's proposal and the opportunity to question our panel of Ernst & Young professionals as they discuss the proposal and its implications.
Several new accounting pronouncements are effective for the first quarter of 2013 for calendar-year entities. We have listed those pronouncements in our document, along with descriptions of related Ernst & Young publications. All entities should carefully evaluate which accounting requirements apply to them for the first time.
Financial services matters: Practical effects of the FASB's proposal for recognizing and measuring financial assets and liabilities
Our first Financial services matters publication explores the potential effects of the FASB's proposal on recognition and measurement of financial assets and liabilities on an organization's financial, tax, and regulatory operations, as well as data, business processes and IT systems. More instruments would be at fair value under the proposal, which would make earnings and regulatory capital more volatile. This publication is produced by our Financial Services Office in our Financial Accounting Advisory Services group. It is intended to help financial services companies assess the potential effects of recent developments on their organizations.
Standard Setter updates
Financial Accounting Standards Board (FASB)
FASB appoints new EITF and advisory group members
Alexander M. Corl, chief financial officer and treasurer of The Lee Company, was appointed to the Emerging Issues Task Force (EITF).
New members were also appointed to the Not-for-Profit Advisory Committee and the Investors Technical Advisory Committee. For additional details, see the FASB press release.
13 March 2013 FASB meeting
The FASB decided that it would issue final guidance on how to assess investment company status but would continue to deliberate disclosure requirements for investments in another investment company. The final guidance would be similar to current US GAAP. Based on previous decisions, the guidance is expected to be effective for an entity's interim and annual reporting periods in fiscal years that begin after 15 December 2013, and early adoption would be prohibited.
The FASB also discussed its project on reporting discontinued operations.
For details, see the FASB Action Alert.
14 March 2013 EITF meeting
For details of the Task Force discussion, see our upcoming March 2013 EITF Update publication.
Upcoming meetings and webcasts
20 March 2013 FASB meeting
The FASB is scheduled to discuss its project on revenue recognition.
For additional details, see the FASB calendar.
See the FASB calendar for upcoming education sessions. No decisions are made at these sessions.
International Accounting Standards Board (IASB)
IASB proposal on impairment of financial instruments
The IASB has proposed a new model for impairment of financial instruments that, like a recent FASB proposal, would require entities to recognize credit losses sooner than they do today. The IASB proposal builds on its joint deliberations with the FASB on a model that incorporates more forward-looking information. (See Ernst & Young's Technical Line and To the Point publications on the FASB proposal). Comments on the IASB proposal are due by 5 July 2013.
Government Accounting Standards Board (GASB)
February 2013 GASB Report
The February 2013 edition of the GASB Report is now available.
Upcoming Thought center webcasts and podcasts
The Ernst & Young Q1 2013 financial reporting update
Co-sponsored by Financial Executives International (FEI)
20 March 2013, 1:00 p.m. Eastern time
Understanding FASB's classification and measurement proposal
21 March 2013, 1:00 p.m. Eastern time